Goldman Sachs Group Inc. (NYSE:GS) shares fell Monday after the firm reported its fiscal first-quarter 2026 results.
Net revenue rose 14% year over year to $17.23 billion, exceeding the $16.97 billion consensus estimate, driven by strength in Global Banking & Markets. Net interest income increased to $3.56 billion from $2.90 billion a year earlier.
Operating expenses climbed 14% to $10.43 billion, reflecting higher transaction-related costs and increased compensation and benefits.
Goldman Sachs CEO David Solomon said the firm delivered strong quarterly results despite rising market volatility, highlighting continued client demand for its execution and advisory capabilities. He added that the bank remains well-positioned but emphasized that disciplined risk management is critical amid ongoing geopolitical uncertainty.
Earnings and Capital
Provision for credit losses totaled $315 million, up from $287 million a year earlier. Earnings came in at $17.55 per share, rising from $14.12 and beating the $16.30 consensus estimate.
The firm’s efficiency ratio improved slightly to 60.5% from 60.6% a year ago. The standardized CET1 capital ratio stood at 12.5%, while the advanced CET1 ratio was 13.4%. Assets under supervision reached a record $3.65 trillion.
Segment Performance
Global Banking and Markets revenue rose 19% to $12.74 billion, supported by a 48% jump in investment banking fees. Equity revenue increased 27% to a record $5.33 billion.
However, fixed income, currencies, and commodities revenue declined 10% to $4.01 billion, weighed down by weaker activity in interest rate trading and mortgages.
Asset and Wealth Management revenue rose 10% to $4.08 billion, driven by higher management and other fees. Platform Solutions revenue fell to $411 million from $610 million a year earlier.
Capital Returns
Goldman returned $6.38 billion to shareholders during the quarter, including $5.00 billion in share repurchases and $1.38 billion in dividends. On April 10, the board declared a quarterly dividend of $4.50 per share, payable June 29 to shareholders of record as of June 1.
Earnings Call Highlights
During the earnings call, Solomon said investment banking activity remains “incredibly robust,” particularly in M&A, although IPO activity slowed in March amid heightened geopolitical uncertainty tied to the Middle East conflict.
He noted that prolonged tensions could add pressure to inflation in the second and third quarters, while CEOs are closely watching the impact of commodity prices on the broader economy.
Solomon added that market volatility has weighed on sentiment, prompting clients to actively reposition portfolios. While IPO and sponsor activity were tempered, he expects dealmaking to rebound once conditions stabilize.
On strategy, the firm remains optimistic about private credit, with Solomon highlighting lender-friendly spreads and a significant runway to scale the business toward its $300 billion target. He also said regulatory reforms are moving in a positive direction for the banking system.
Separately, Goldman is increasing investments in cybersecurity and infrastructure resilience, including collaboration with Anthropic and other vendors.
CFO Denis Coleman said the bank is accelerating spending on cloud migration and data capabilities, while continuing to balance client-focused capital deployment with shareholder returns.
GS Price Action: Goldman Sachs Group shares were down 3.72% at $873.99 at the time of publication on Monday, according to Benzinga Pro data.
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